1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
snow_lady [41]
3 years ago
6

A firm has issued $5 par value preferred stock that pays a $0.80 annual dividend. The stock currently sells for $9.50. In calcul

ating WACC, what should one use for the value of the firm's preferred stock
Business
1 answer:
Aloiza [94]3 years ago
7 0

Answer:

$9.50

Explanation:

In the given case, the value of the firm preferred stock is equal to the market value price or selling price of the preferred stock

In mathematically,

Value of the firm preferred stock = market price or selling price of the preferred stock

Value of the firm preferred stock = $9.50

It only consider the market price of the preferred stock

All other information which is given is not relevant. Hence, ignored it

You might be interested in
Cover Board Inc. is a company that designs and prints advertisements on coffee sleeves used on cups sold in coffee shops. To fin
Delicious77 [7]

Answer:

The correct answer is: C. Personal selling

Explanation:

The personal sale is a tool of the promotional mix or type of sale where a particular seller offers, promotes or sells a product or service to a particular individual consumer directly.

It is based on a personal communication since it goes from one person (the seller) to another person (the potential customer or buyer), unlike for example advertising, which uses impersonal means since it is addressed to several consumers at the same time.

Personal selling is the most effective way to sell a product and to get a satisfied customer with the possibility that he can repeat the purchase or recommend the product or the company to other consumers.

5 0
3 years ago
Read 2 more answers
How did the paleolithic people came to know about fire<br><br>very short ​
Mekhanik [1.2K]

Answer:

There are multiple theories, nobody can be 100 percent sure how but here are 2 main theories:

Explanation:

-Lightning strikes a nearby tree, which catches fire. Frightened but inspired, these cavemen venture out, bring burning sticks back into their cave and learn to use fire.

-They may have used pieces of flint stones banged together to created sparks. They may have rubbed two sticks together generating enough heat to start a blaze.

6 0
3 years ago
Merv Grazinski, driving his Winnebago, put it on cruise control to go make coffee. The Winnebago went off the road, turned over
Mars2501 [29]

Answer:

B). Contributory negligence

Explanation:

From the question we are informed about Merv Grazinski, who is driving his Winnebago, put it on cruise control to go make coffee. The Winnebago went off the road, turned over several times, and left Grazinski paralyzed from the waist down. He brings a product liability lawsuit against Winnebago. In this case, the best possible defense for Winnebago to use at trial Contributory negligence. Contributory negligence can be regarded as failure of plaintiff to have a tangible care for their own safety. Plantiff compensation could be reduced by Contributory negligence if confirmed that the occurrence of incident is likely as a result of their actions

7 0
3 years ago
Joseph purchased 100 shares of abcd growth fund for $10.00 per share for a total investment of $1,000. at the end of one year, h
EleoNora [17]
It is given that Joseph purchased 100 shares of ABCD Growth Fund for a price of $10.00 per share with a total investment of $1,000. At the end of the year he sold his investment for $11.20 per share. Find the total capital gain.

To get the capital gain, compute the total price in which Joseph sold his investment.

$11.20 x 100 = $1,120

Subtract the answer to the total price bought by Joseph
$1,120 - $1,000 = $120

The total capital gain is $120
7 0
3 years ago
. How does analyzing fixed and variable costs help you to set a sale price that will generate profit? 2. How is profit affected
ELEN [110]

Answer:

1. Apart from helping to know the average cost of a product, analyzing fixed and variable cost will help to derive the break even point.

2. Profit will go down

Explanation:

1. The size of the selling price and the variable cost determine contribution per unit of a product. Contribution per unit is Price minus variable cost. This shows the  contribution of sales revenue towards covering the fixed cost of a product.

2. Relevant range is the estimated or budgeted activity level which defines a business volume of production or operation, it is both maximum and minimum threshold within which the entity must operate to expect certain level of cost and revenue.

Sometimes fixed costs are fixed within a relevant range of activities and outside such range, fixed cost may become variable, which will all things being equal impact negatively on the price.

Also, within relevant range volume discount may be achieved and outside such range, this may be forfeited which, will also reduce profit all things being equal.

4 0
3 years ago
Other questions:
  • A recent study in your reading suggested that ______ spend 13% more than an average customer and refer business equal to 45% of
    12·1 answer
  • LO 4.2Which document lists the inventory that will be removed from the raw materials inventory?
    5·1 answer
  • If you believe in the ________ form of the EMH, you believe that stock prices reflect all relevant information, including histor
    15·1 answer
  • Laura is a billing clerk in a​ medium-sized manufacturing company. she reports to the supervisor of accounts​ payable, who in tu
    8·1 answer
  • Ralph Waters operates a watch repair business in Mesa, Arizona. He orders most of his parts from out-of-state suppliers. He orde
    8·1 answer
  • Jim, a Connecticut resident, ran a red light while he was vacationing in California and collided with Amanda’s car. Amanda suffe
    7·1 answer
  • Jonas is a 60% owner of Ard, an S corporation. At the beginning of the year, his stock basis is zero. Jonas's basis in a $20,000
    14·1 answer
  • Which of the following approaches can help you mitigate the challenges of poor forecasts? a. Obtain and use the best, most recen
    8·1 answer
  • On January ​1, 2018​, Wallace​, Inc. decides to invest in 7,200 shares of Dressage stock when the stock is selling for $ 20 per
    9·1 answer
  • Smith buys and sells securities. On December 15, 2018, Smith purchased $548,000 of Jones shares and elected the fair value optio
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!